US$Chf fell to a to 7 week low on the back of the Trump concerns on Wednesday and looks as though there could be more downside to come.
The daily momentum indicators are now pointing sharply lower, and are aligning with the short term charts although they are becoming oversold so some short term consolidation may be needed. If we do head lower, then below the 0.9774 session low, there is then little support to be seen until we reach 0.9735 and 0.9705. A break of the rising trend support would then open the way to 0.9600/40 although that remains some way off.
On the topside, the initial resistance will come in at the previous low of 0.9813, above which could see a run back to 0.9850 although this seems unlikely today.
Trading from the short side with a SL placed above 0.9850 seems to be the plan.
|24 Hour: Prefer to sell rallies||Medium Term: Mildly Bearish|
|0.9936||(50% of 1.0100/0.9774)||0.9774||Session low|
|0.9900||(38.2% of 1.0100/0.9774)||0.9735||(76.4% of 0.9549/1.0343)|
|0.9885||Minor||0.9705||Rising trend support|
|0.9850||(23.6% of 1.0100/0.9774)||0.9675||Minor|
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